Bowing to pressure from business groups worried about an avalanche of paperwork, the U.S. Senate voted Tuesday to rescind the Form 1099 tax reporting requirement included in last year’s health-care overhaul, Reuters reported.
 
With bipartisan support, the Senate voted 87-12 to pass legislation sponsored by Sen. Mike Johanns, R-Neb., that repeals a requirement that businesses and landlords file Form 1099 documents with the Internal Revenue Service for purchases of goods and services exceeding $600 a year from a single vendor.

The tax filing requirement did not directly relate to health care but was intended to help pay for the health care law that is considered one of President Barack Obama’s top legislative achievements.

The legislation earlier was passed by the House of Representatives and now goes to President Obama, who is expected to sign it into law.

It was approved in Congress despite concerns by some Democrats about how the $22 billion in lost revenue would be replaced.

Lawmakers in both parties agreed that the tax reporting requirement should go.
But some Democrats argued that the payback provision for excessive subsidies would discourage individuals and small businesses from complying with the law’s requirement that they obtain health insurance.